ATTENTION: MANAGING PARTNER/OFFICER, OPERATIONS PARTNER/OFFICER

National Securities Clearing Corporation ("NSCC") filed revisions to its Fee Schedule with the Securities and Exchange Commission ("SEC") pursuant to Section 19(b)(3)(A) of the Securities Exchange Act of 1934. The revisions (i) establish fees for the Licensing and Appointments ("L&A") feature of NSCC’s Insurance Processing Service ("IPS") effective as to services provided on and after October 1, 2001, (ii) adjust the fees that NSCC charges for the Initial Application Information ("APP") feature of IPS effective with respect to services provided on and after January 1, 2002, and (iii) standardize the descriptions of IPS transmissions in NSCC’s Fee Schedule.

As described below, NSCC has determined to make the following revisions to its fees:

Pursuant to this rule change, the Transaction Fee for L&A will be as follows: for each transmission of L&A information designated as a periodic reconciliation ("Periodic Reconciliation"), $.15 per item; for each other transmission of L&A information ("L&A Transaction"), $.35 per item. No File Fee will be applied to files that contain L&A transmissions.

The Transaction Fee for APP is $7.50 per transmission or receipt (each an "item"). Pursuant to this rule change, the Transaction Fee for APP will be as follows: from 0 to 249 items per month, $7.50 per item; from 250 to 999 items per month, $4.00 per item; from 1,000 to 2,499 items per month, $2.00 per item; and for more than 2,499 items per month, $1.00 per item. The File Fee of $15.00 per file, per day will continue to apply to APP.

Finally, this rule change standardizes the terminology in NSCC’s Fee Schedule, so that all transmissions of information through IPS are referred to as items, and makes certain other clarifying changes.

The full text of the rule change may be obtained by contacting the NSCC Legal Department at (212) 855-3221.

Written comments on the proposed rule filing may be addressed to Lisa T. Siebold, Assistant Secretary, National Securities Clearing Corporation, 55 Water Street, New York, New York 10041, and your comments will be forwarded to the SEC. You may also address your written comments to the Secretary of the Commission, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, D.C. 20549. We request that you provide NSCC with a copy of your comments.

Questions regarding the revised fee schedule should be directed to Walter F. Siebecker, Managing Director, at (212) 855-5646. Questions regarding the rule filing should be directed to Jeffrey T. Waddle, Legal Department, at (212) 855-3260.

Karen L. Saperstein
Managing Director